GBP/USD seeks support
The US dollar recoups some losses ahead of the FOMC this Wednesday. The latest horizontal consolidation has managed to stay above the 30-day SMA and suggests that the bias remains bullish in the medium-term. A surge above the recent high of 1.2540 would resume the upward trajectory, making May 2022’s high of 1.2660 as the next threshold. As the RSI cools down, trend followers are expected to offer support around 1.2450 which coincides with the 20-day SMA. 1.2370 is key in keeping the momentum intact.
EUR/JPY continues to climb
The Japanese yen extended losses after the BOJ hinted at continuing monetary easing. The latest surge has propelled the pair above the December 2014 high of 149.00 and the psychological level of 150.00, which may keep the yen under pressure for a prolonged period of time. With the RSI easing from its overbought condition, the bulls may see in a pullback an opportunity to stake in ahead of a new round of rally. 148.90 is the closest support with 147.00 as a second layer. A close above 151.50 would carry the momentum further.
GER 40 clears resistance
Equity markets steady as JPMorgan took control of ailing First Republic Bank. A tentative break below 15720 caused a little profit-taking but was not enough to spook most buyers. Then a follow-up rebound has managed to lift offers at the recent top of 15910, prompting sellers to cover their positions and indicating that the recent whipsaws were merely a consolidation phase ahead of a bullish continuation. 16100 is the next level to clear before a test of the all-time high at 16300. On the downside, 15850 is the first support.
